Analyst Greg McLeish predicted more companies will defer facility building in the face of mass-cultivation capacity losing its value.
MJ Biz Daily
- Chris “Equity Guru” Parry predicted a coming “period of cannabis company eugenics, where the strong will merge with the strong, and the weak will be drowned at the lake.”
- As recent news about Aurora and Hexo brought those companies’ stock values down, stock values across the sector dropped. An analyst predicted some smaller LPs will face bankruptcy in 2020 as survivors won’t see the stocks rally until the year’s final quarters.
MarketWatch, CanTech Letter
- Golden Leaf, a small Ontario LP with cultivation, production, and sales licenses (and $400,000 in debts), sold for $3.4M, the lowest selling price for an LP to date. “There is no (scarcity) value in the license anymore or projected production capacity,” said financial advisor Aaron Salz.
The Deep Dive, Globe and Mail, Twitter—Aaron Salz
- Unlike cultivators, extractors did very well in 2019, as every producer in the country tried to get their biomass turned into extracts for vape pens, ingestibles, and topicals, creating enormous return on invested capital for Valens and MediPharm Labs.
- Cannabis short-sellers who bet on the sector failing also had a nice year.
The coordinator of Niagara College’s commercial cannabis program said LPs struggling with pest control and crop management need to stop treating cannabis as agriculturally unique and “get back to basic agronomy.” He encouraged producers seeking advice to seek contacts in the tomato and vegetable industries.
Vancouver Sun, CBC Windsor
Former employees of bankrupt LP AgMedica are waiting to find out whether they will get severance or termination pay from the company.
Chatham Daily News
Lawyer Harrison Jordan charted grey-market operators’ moves into the legal sector.